Singapore’s STI Chart Points to Bullish Year

An inverted head-and-shoulders pattern in the charts point to a very bullish year ahead for Singapore stocks.

On its long-term chart, the 30-share Straits Times Index has started to erode the right neckline of a head-and-shoulders formed over the past five years. If this is confirmed by market action in the next few weeks, it points to a medium-term objective at 3,700, almost 500 points above Thursday’s peak at 3,231.

In the inverted head and shoulders pattern, the bottom of the left shoulder was hit in November last year at 3,038, the bottom of the head was made at the 2009 low of 1,455, with the bottom of the right shoulder at 3,906 (the all-time-high hit in October 2007).

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